Ford’s CNY promo offers Fiesta at RM588 per month

Ford Malaysia recently launched a special “Let’s Fiesta!” Chinese New Year promotion that will go on till February 28. The promo offers the chance to own a new Ford Fiesta from as low as RM588 per month, although monthly repayment does increase progressively by the year.

The RM588 per month calculation is based on the Fiesta 1.6L Sport (on-the-road with insurance in Peninsular Malaysia) with a nine-year financing period and RM76,000 loan amount. The margin of financing must not exceed 90% of the vehicle invoice price. Participating banks include Maybank and AmBank.

Buyers of the Fiesta get a five-year or 200,000 km warranty. For further peace-of-mind, new Fiestas also come with the Ford Extended Service Plan (ESP), a free service maintenance programme that covers parts and labour for up to three years or 60,000 km, whichever comes first.

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

car already depreciate but installment went higher instead. many ppl already regretted buying kia spectra and citra under similar scheme. its not worth it. only desparate car companies market their products like this. other than offering super long warranty or free services for 2 years. only 1 reason – they need to clear stocks before its too late without offering huge discounts

That’s odd. By my calculations, with MYR 76k loan amount, even with 0% annual interest, your monthly installment is closer to 650 MYR for a 9 year tenure. This must be a stepped installment payment. If not they’re losing money.

This promotion is not the way it’s been understood.. You start paying RM588/month for the first year, then subsequently you’ll have to pay a higher instalment reaching RM900++/month at the 9th year…
As usual, cheating and fooling customers..

whats your problem?
The table shows what you need to pay the following year no? I dont think its their problem if people cant read.
Besides, the total amount you pay in interest works out the same anyway. Just that they let you pay less for the first year la.

I don’t think opposition will win, because of the most creative corrupted government. They are all in to win this election, with the help of corruption. The only way to win against this corrupted government is 80% of Malaysian vote against them. Want cheaper car, vote wisely.

That interest is 23.38% of the loan amount, (RM 17,764.80 / RM 76,000), it being equivalent to FLAT rate interest of 2.60% per year, (23.38% / 9 years). The interest itself is very good. It’s not a bad deal.

However, the catch is the PERCENTAGE of increment from Year 1 – Year 4. Here’s the breakdown.

How the above applies is your salary increment, (if there is one in the first place !), has to match the above raise the percentage above for the next 3 years ! If it doesn’t, you’re screwed ! What job and in what industry will give you an increment of 8% in 1 year, let alone 22% ?!

In short, take this offer if and only if you can afford to set aside the maximum installment amount, this case being RM 868, right from the start. Don’t go near this if you are not within 90% and above of this amount.

nice analysis but to simply look at it, the increment is around rm 50 to rm 100+ per year. Most salary would increase more than that per year. So most people can afford this payment scheme. The disadvantage of this scheme is the loan amount deduction is less on early years. So this mean that if you want to sell the car in short time, this scheme is not good for you.

This reminds me of the Volvo S40 promo in about 2005, first year payment Rm1188 etc than increasing gradually, but in the end useless, as the price discounted from RM188k to Rm169k if im correct..thats the problem with buying these ” cold stock” cars

a lot of the commentators seems to say 3yrs loan max, but honestly I ain’t gonna pay 2k a month on a car say, a Vios. Lets be realistic. I guess Alot just TKSS only, most of you fellas seem to say it because that’s what you wanna do not what you’re doing.

By the way my company pays for interest so makes no sense for me to take a shorter loan period.

I know it’s the norm here but paying 9 years for a car is silly. Even before you are halfway paying back the loan the market value of your car is below the balance of your loan.

At this stage it is cheaper to let the bank re-possess your car than pay back the loan if you want to change car. But in Bolehland you can’t just do that. The bank can sue you for the balance if they cannot recover the balance of loan from repossessing and selling your car.

Escalating instalment plan should be avoided. This assumes that your income will rise as you age but what if it doesn’t? Remember that inflation is also rising and you may have more expenses like eduction as your children grows. This is not the way to afford a car which you can’t afford now.

And yes, I agree with the comments of “poor Malaysians needing 9 years to pay off a small car”. Only in Bolehland.

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